Exide Industries has drawn mixed reactions from brokerages following its Q1 performance and lithium-ion strategy. While the company’s operational performance was largely in line, concerns persist over growth pace and structural risks in the new energy business.
Nuvama on Exide Industries share: Maintains ‘Hold’, TP ₹380
Nuvama has retained its ‘Hold’ rating on Exide Industries, while marginally raising the target price to ₹380 from ₹370. The brokerage noted that EBITDA performance was in line with expectations and said the lithium-ion project is progressing as planned. The core lead-acid battery business is expected to deliver 7% revenue and 9% EBITDA CAGR over FY25–28E. Nuvama’s valuation is based on 15x Sep-27E EPS for the lead-acid business, while valuing the lithium business and HDFC Life investments at ₹60/share.
Motilal Oswal on Exide share: Maintains ‘Neutral’, TP ₹379
Motilal Oswal has maintained a ‘Neutral’ stance on Exide with a target price of ₹379. The brokerage highlighted improved margins, aided by effective cost control measures. While acknowledging market optimism around the lithium-ion venture, MOSL remains cautious on return potential. The firm said the 2W and 4W replacement demand remains robust, and the mobility business continues to see double-digit growth. Commercial operations for the lithium-ion cell manufacturing are expected to begin in FY26. MOSL believes the stock is fairly valued at ~25.5x/23x FY26/27E EPS.
Nomura on Exide share: Maintains ‘Neutral’, TP ₹404
Nomura has retained a ‘Neutral’ rating on Exide Industries with a target price of ₹404. The brokerage said margin performance in Q1 was ahead of expectations, but overall growth recovery remains slow. It also flagged structural concerns over the lithium-ion segment due to falling cell prices and heightened competition. The cell business performance remains the key metric to track going forward, Nomura added.
Despite a stable quarter and steady core performance, Exide’s longer-term prospects hinge on the execution and returns of its lithium-ion expansion. Brokerages remain watchful as the company navigates through sectoral headwinds and strategic investments.
Disclaimer: The views expressed in this article are based on brokerage reports and do not represent the opinion of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
